EINDHOVEN, The Netherlands, Oct. 26, 2020 (GLOBE NEWSWIRE) -- NXP Semiconductors N.V. (NASDAQ: NXPI) today reported financial results for the third quarter 2020, ended September 27, 2020.
“Consistent with our pre-announcement on October 8, our third quarter results were significantly better than our original guidance, reflecting a strong rebound in demand across nearly all of our focus end markets. NXP delivered third quarter revenue of $2.27 billion, flat versus the year ago period, but up 25 percent on a sequential basis, and about 13 percent better than the mid-point of our guidance. Because of the higher revenue and good margin fall through, we delivered strong operating profit significantly above our guidance,” said Kurt Sievers, NXP President and Chief Executive Officer. “More importantly, the momentum which began during the third quarter is continuing into the fourth quarter of 2020. Within our strategic end markets of Automotive, Industrial & IoT and Mobile the improving trends are due to a combination of a rebound in our core business, as well as solid contribution from the ramp of new products. The recovering markets along with our strong product portfolio and customer engagements make us confident to continue to deliver robust growth in 2021.”
Key Highlights
- Third-quarter revenue was $2.3 billion, up 0.1 percent year-on-year;
- Third-quarter GAAP gross margin was 48.1 percent, and GAAP operating margin was 1.4 percent;
- Third-quarter non-GAAP gross margin was 50.1 percent, and non-GAAP operating margin was 25.8 percent;
- Third-quarter cash flow from operations was $527 million, with net capex investments of $68 million, resulting in non-GAAP free cash flow of $459 million;
- On August 27, 2020, the NXP Board of Directors approved the payment of an interim dividend for the third quarter 2020 of $0.375 per ordinary share;
- In the third quarter of 2020 NXP returned $117 million to shareholders, primarily through previously announced dividend payments;
- On September 28, 2020, subsequent to the close of NXP's third quarter, the company fully redeemed the $400 million of outstanding principal of the 4.625% Senior Notes due 2022 and the $1.35 billion of outstanding principal of the 4.125% Senior Notes due 2021. The total amount of these redemptions, $1.83 billion, were paid from available cash on balance sheet.
Summary of Reported Third Quarter 2020 ($ millions, unaudited ) (1)
| Q3 2020 | Q2 2020 | Q3 2019 | Q - Q | Y - Y | ||||||||||||
| Total Revenue | $ | 2,267 | $ | 1,817 | $ | 2,265 | 25 | % | — | % | ||||||
| GAAP Gross Profit | $ | 1,090 | $ | 860 | $ | 1,186 | 27 | % | -8 | % | ||||||
| Gross Profit Adjustments (i) | $ | (45 | ) | $ | (32 | ) | $ | (30 | ) | |||||||
| Non-GAAP Gross Profit | $ | 1,135 | $ | 892 | $ | 1,216 | 27 | % | -7 | % | ||||||
| GAAP Gross Margin | 48.1 | % | 47.3 | % | 52.4 | % | ||||||||||
| Non-GAAP Gross Margin | 50.1 | % | 49.1 | % | 53.7 | % | ||||||||||
| GAAP Operating Income / (Loss) | $ | 32 | $ | (145 | ) | $ | 233 | 122 | % | -86 | % | |||||
| Operating Income Adjustments (i) | $ | (554 | ) | $ | (521 | ) | $ | (454 | ) | |||||||
| Non-GAAP Operating Income | $ | 586 | $ | 376 | $ | 687 | 56 | % | -15 | % | ||||||
| GAAP Operating Margin | 1.4 | % | (8.0 | )% | 10.3 | % | ||||||||||
| Non-GAAP Operating Margin | 25.8 | % | 20.7 | % | 30.3 | % | ||||||||||
